I
have seen a lot of threads on the bullitin boards from
racers asking how to remove the pressed-in rubber
bushings from the axle housing and there are a lot of
different ways to do it.
Here's the way I recommend doing it and it's real easy.

Tools Required:
Hacksaw
Drill
3/8" Drill bit

The bushings are press
fit into the axle housing and the basic idea is to break
the tension between the housing and the steel sleeves.

1) Using a 3/8" drill
bit "swiss cheeze" the rubber bushing by
drilling a bunch of holes in it to loosen from the outer
sleeve.

2) Let the drill bit walk around the outer portion of the
rubber sleeve and when it does it will completely
separate the rubber from the sleeve. When it does just
push the rubber out.

3) Thread a hacksaw blade through the sleeve and
carefully saw through the wall of the sleeve. Once you
saw through the wall of the sleeve the press-fit tension
will be gone and you can simply tap the sleeve out. Be
careful to not saw into the casting of the housing ear.

With the rearend on the
bench this process takes about 15-20 minutes to do both
sides.